HCL Infosystems has received an order from CGST Noida (Appeals) imposing an ₹80.22 lakh penalty in a pre-GST CENVAT credit dispute.

The order came from the Additional Commissioner, CGST (Appeals), Noida. It is dated 15 September. The company received it on 24 September and has informed BSE and NSE.

The fight is over tax credits the company claimed on various cesses before GST replaced the older indirect taxes. These credits, known as CENVAT credits, let a business offset tax already paid on the materials it uses.

The case has a history. In an order dated 1 February 2025, the adjudicating authority confirmed a tax demand of Rs 80.22 lakh against the company under Section 74(1) of the CGST Act, 2017.

At that stage, it dropped the interest and penalty. The tax department appealed against that relief. The appeals authority partly agreed and changed the original order to add the penalty.

The tax demand itself stays the same, and both the demand and the penalty now stand at Rs 80.22 lakh. HCL Infosystems said it is studying the order and weighing its legal options.

The company has seen better news in the courts in recent months. On 13 July, the Supreme Court dismissed the Income Tax Department’s appeal against a Rs 14.90 crore demand.

That case involved Rs 60.80 crore in compensation from Hewlett Packard, received in 1997-98, which the company treated as non-taxable.

On 10 August, the Allahabad CESTAT set aside a Rs 22.84 crore service tax demand, along with interest and penalties.

For now, the penalty remains a matter between the company and the tax department. HCL Infosystems has not yet said which step it will take.

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